Investments  

Top performing funds of the year revealed

Top performing funds of the year revealed

The performance figures are in and the fund managers keeping investors happy with stellar returns this year have been named.

The £362m Old Mutual UK Smaller Companies Focus fund is the absolute best performing fund across all Investment Association Sectors in the year to 5 December, according to data compiled by Chelsea Financial Services.

The fund, managed by Nick Williamson, returned 46.5 per cent.

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The fund outperforms all funds in the IA UK Smaller Companies sector over one, three and five years.

Apart from that fund, mandates exposed to the Chinese equity market dominated.

The £115m Baillie Gifford Greater China fund was second best performer, returning 45.16 per cent.

The £800m NB China Equity fund was next best, returning 45.15 per cent. Mandates investing in the wider Asia region also had a strong presence in the best performers list.

Investors such as Neil Woodford take the view that the strong performance of the Chinese economy is the result of a rise in credit that will prove to be an unsustainable bubble, and burst.

Dan Wang, a China-based economist with the Economist Intelligence Unit said policies have been implemented in recent months to control the level of credit growth, and the economic growth being achieved in the country is the result of both growth in consumption and inflation growth.

The worst performing fund in the IA universe in 2017 was the £8.7m Manek Growth fund.

Darius McDermott, managing director at Chelsea Financial Services said this fund will close at the end of December, having made double digit losses over one, three and five years.

The worst performing sector was oil and energy.

Mr McDermott said: ““In terms of sector, it may come as little surprise to investors that oil and energy funds have generally been the worst performers in 2017 so far, with five out of the 10 of the most lacklustre funds all specialising in the market area.

"Gold funds have also had a torrid time year-to-date, with three out of 10 of the worst-performers.”   

David.Thorpe@ft.com